One of my dreams is to spend more time travelling after I get out of debt. I already have a wish-list of places I want to visit and things I want to do. I’ve even dreamed about what my budget will look like once I’m debt free. (Hint: I’m not going to need nearly as much income every month as I have to earn now to cover my living expenses and debt payments.)
Even though I want to travel and I won’t have debt to worry about anymore, I still want to save money wherever I can. One of the most common travel tips to help you save money is to rent a villa, condo, or house when you go on vacation instead of staying at a hotel.
Renting one of these places usually has a cheaper price tag, more space for you and your guests, and they usually have a full-sized kitchen you can use to prepare meals so you don’t have to eat out for every meal of the day. This alone can save you tons of money on a multi-day trip.
But should you ever buy a beach or vacation house?
I’ve looked at (and dreamed about) some houses for sale in Perth via Lend Lease. Some of them are quite beautiful and appear to be affordable. They might be even cheaper to own than to rent from someone else. But buying a beach or vacation house has downsides too.
When you are calculating the cost of buying a beach house, don’t forget about the cost of maintenance and repairs. You have more to pay for than the monthly mortgage when you buy a house, especially one by the beach. Saltwater is known to cause more wear and tear on a property, so you need to take that into account if you buy a beach house.
How Much You’ll Use It
If you haven’t done a lot of travelling it’s safe to say that buying a beach or vacation house probably isn’t the best idea. For one you likely don’t have a place in mind that you’d want to visit multiple times throughout the year. If that’s the case, you probably shouldn’t buy property there unless you plan to rent it out to other visitors to help you make the mortgage payments and pay for the property maintenance costs.
Renting your beach house to visitors could be lucrative, but you’ll probably need to consider the additional costs too, like paying someone to manage it for you if you don’t live close by, and paying a cleaning crew to tidy the place up between renters. Also many beach communities have a busy season and a slow season. It might be difficult to rent out your beach house during the slow season, and you might find yourself reluctant to stay at the beach house yourself during the busy season when rental demand for your property is high.
These are all things that need to be considered before you decide to invest in a beach or vacation house. Buying such a property could be a good investment and a way to save money on your vacations, but it could end up being very costly to you too.
Do you plan to buy a beach or vacation house?